Brent crude prices remained close to $105 a barrel, but persistent foreign outflows did not significantly impact Dalal Street on Friday. The performance of private sector banks helped support a broader market recovery, while the rupee recorded its sharpest two-day gain in several weeks, providing investors with a reason to be optimistic.
“The positive undertone in the market was primarily supported by gains in private banking stocks, a recovery in the rupee against the US dollar, and resilient corporate earnings, which offset concerns about elevated crude oil prices,” noted Ajit Mishra, Senior Vice President of Research at Religare Broking.
The Sensex climbed by 231.99 points, or 0.31 percent, to close at 75,415.35, and the Nifty 50 gained 64.60 points, or 0.27 percent, settling at 23,719.30. However, the session was marked by volatility. After an initial gain of 164 points, the Nifty lost 135 points from its intraday peak, as profit-taking emerged near the crucial resistance level of 23,800. Notably, this is the seventh consecutive session that the index has struggled to maintain above this threshold. The cash market turnover on the NSE fell by 7 percent from the previous session.
On the sectoral front, gains were led by Nifty Private Bank and Financial Services, followed by the Metal and PSU Bank indices. The Healthcare, Media, and Pharma sectors underperformed. Among individual stocks, Shriram Finance and Trent were the top gainers, while Max Healthcare, Sun Pharma, and ONGC negatively impacted market sentiment. The Nifty Midcap 100 ended marginally higher by 0.14 percent, while the Nifty Smallcap 100 declined by 0.15 percent, indicating cautious positioning among investors. Overall market breadth remained neutral, with 249 stocks in the Nifty 500 universe closing lower, while the BSE advance-decline ratio was 1.12.
The rupee continued its recovery for a second day, strengthening by 51 paise to close at 95.69 against the US dollar. This rebound followed the Reserve Bank of India’s intervention in the currency market using its USD/INR buy-sell swap mechanism, which curbed excessive weakness. A decline in imported commodity prices, aided by easing tensions between the US and Iran, further supported the domestic currency. Key levels for spot USDINR include resistance at 96.20 and support at 95.40.
In gold markets, prices softened domestically. COMEX Gold stabilized around $4,535, while MCX Gold fell nearly ₹400 to ₹1,59,200, influenced by the rupee’s 0.70 percent appreciation that reduced the cost of the metal. Bullion markets are expected to remain sensitive to developments in US-Iran negotiations, dollar index fluctuations, and the rupee’s direction.
Over the week, the Nifty gained 64 points, while the Sensex added 232 points. The IT sector rose by 4.25 percent, with the Digital index up by 2.75 percent. Media stocks emerged as the week’s biggest losers, dropping over 4 percent. Additionally, the government reported that peak electricity demand crossed 270 gigawatts for the fourth consecutive day, coinciding with a nationwide heat wave.
“The markets were volatile on Friday and ended slightly higher amid mixed cues,” remarked Mishra, emphasizing that “continued foreign institutional outflows and broader global macroeconomic uncertainties kept investors cautious.”
Looking ahead, analysts at Kotak Securities identify the 23,700–23,750 range as immediate support, corresponding to the 50-day simple moving average. A breakout above 23,850 on the Nifty could lead towards 24,000–24,200, while a decline below 23,700 may risk a retreat to 23,300–23,400. For the Bank Nifty, support levels are concentrated around 53,000–53,500; maintaining these positions could extend gains toward 54,500 and possibly 55,000. The broader market direction will depend on RBI policy cues, crude oil price trends, foreign institutional investment patterns, and the evolving situation in US-Iran negotiations.
